No. 1 retailer optimistic about the holiday season; raises full-year estimates.
November 16, 2004: 7:35 AM EST
NEW YORK (CNN/Money) - Wal-Mart Stores Inc., the world's biggest retailer, posted a higher quarterly profit Tuesday, in line with Wall Street expectations, and said it was optimistic about the rest of the year.
Earnings rose to $2.29 billion, or 54 cents per share, in the third quarter ended Oct. 31, compared with $2.03 billion, or 46 cents per share, a year earlier.
Wal-Mart (Research) had already warned it expected third-quarter earnings to fall at the low end of a forecast 52 to 54 cents a share range and analysts on average were expecting earnings of 54 cents per share, according to First Call.
Net sales for the quarter were $68.5 billion, up 9.7 percent over the same period a year earlier, but slightly shy of analysts' estimates for revenue of $69 billion.
"Our sales were lower than we are satisfied with but the economy continues to improve and we are well positioned for the holidays. With the help of our associates, I look forward to another record quarter and a successful holiday season," Wal-Mart's president and CEO Lee Scott said in a pre-recorded earnings call.
Sales at its stores open at least a year -- a key retail measure known as same-store sales -- rose 1.7 percent in the period, consisting of a 1.3 percent boost at Wal-Mart Stores and a 4 percent jump at Sam's Club.
"We did a particularly poor job at the Wal-Mart division on low sales volume," Scott said. "This is one of the few quarters where we did not grow operating profit faster than our sales. However, we do expect to have a better Christmas than last year and are therefore raising our year-end estimates.
For the fourth quarter ending Jan. 31, Wal-Mart expects a profit of between 73 and 75 cents a share and a same-store sales increase of between 2 and 4 percent.
It now expects to earn between $2.39 and $2.41 a share for the full fiscal year that ends in January, compared with a previous forecast of between $2.36 and $2.40 a share.
Analysts on average had forecast a profit of 74 cents a share for the quarter and full-year profit of $2.40 a share.
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